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Individual Marginal Tax Rates for Interest

1

—2014

  Notes

(1)  This table applies to interest income and includes all federal and provincial taxes and 

surtaxes, but does not include provincial health premiums (see the table “Provincial Health 

Premiums”). The respective basic personal tax credits are also included in the calculations.

 

 As more than one rate could apply to a particular bracket due to a difference in the federal 

and provincial bracket thresholds, the rate indicated in the table is that which applies 

to income in approximately the middle range of the bracket. The table assumes that an 

individual has regular income that places the individual in the middle of the above tax 

brackets before taking the interest income into account. 

 

For provinces that have tax brackets above the top federal tax bracket, additional rates 

have been included in the table. Individuals taxable on income in excess of $150,000 in 

British Columbia and Nova Scotia, or on income between $150,000 and $220,000 or  

above $220,000 in Ontario should use these higher rates.

 

Significant interest income in addition to the income in the middle range of the bracket 

may attract tax at a rate higher than what is shown. Therefore, for purposes of estimating 

taxes applicable to this income, the rate in the next bracket should be used in order to be 

conservative.

(2)   The 2014 Ontario budget proposed to create a new personal income tax bracket effective 

January 1, 2014 for taxable income between $150,000 and $220,000. The budget also 

proposed to lower the taxable income threshold for the top tax bracket from $514,090 to 

$220,000 effective January 1, 2014 (see the table “Federal and Provincial/Territorial  

Income Tax Rates and Brackets for 2014 and 2015”). These rates and brackets may be 

subject to change pending the results of the June 12 provincial election.

   $11,139

to $43,953

$43,954

to $87,907

$87,908

to $136,270

$136,271

and over

British Columbia

23.26%

29.70%

40.70%

43.70/45.80%

Alberta 

25.00

32.00

36.00

39.00

Saskatchewan 

26.00

35.00

39.00

44.00

Manitoba 

25.80

34.75

43.40

46.40

Ontario

2

20.05

31.15

43.41

46.41/47.97 

/49.53

Quebec

28.53

38.37

47.46

49.97

New Brunswick

27.68

36.82

42.52

46.84

Nova Scotia 

23.79

38.67

43.50

 46.50/50.00

P.E.I.

24.80

38.70

44.37

 47.37

Newfoundland and 

Labrador

22.70

34.50

39.30

 42.30

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